North Carolina Down Payment Assistance Programs

Online Payments - The North Carolina Housing Finance Agency has two excellent programs for First Time Home Buyers. These systems will be the deposit Assistance System as well as the Mortgage Credit Certificate.

You also buy a property between December 1, 2009 and January 1, 2009 and should you meet the requirements for one of those plans, you may also qualify for the $8,000 tax credit just enacted into law.

First, who is a First Time Home Buyer? There is a First Time Home Buyer someone who hasn't owned a home in the past three years. It is exactly the same qualifying definition.

What is a Mortgage Credit Certificate and Who Qualifies?

An MCC “reduces your tax liability predicated on a percentage of the mortgage interest that you pay.

In case you are eligible for the MCC, you'll be able to claim 20% of the interest you pay as a credit on your own federal income taxes. It's possible for you to save as much as .

You'll find a way to join this with the $8,000 tax credit, should you qualify for the MCC, for 2009. This would reduce the tax liability of a buyer's by $10,000.

Who qualifies for an MCC is based in your income and also the purchase price of the property you are buying. Household income is defined as the “gross income of the mortgagor and any other individual expected to reside in the home who is 18 years old or older.”

House price limits Durham and Chatham Counties and the income are listed below.

MCC Income Limits 1 Individual $61,500 2 Individuals $61,500 3 Individuals $70,500 4 Persons $70,500

MCC Sales Price Limits New Dwelling $220,000 Existing Dwelling $210,000

Home buyers that want help with their down payment and closing prices may be able to get down payment assistance - or, to put it differently, interest-free, deferred second mortgages up to $8,000. The purchaser only needs to pay $1,000 of their own funds and the load would pay around .

This plan has stricter income limitations than the MCC program summarized above. Like the MCC program, it might be used together with the new $8,000 tax credit on house purchases between December 1, 2009 and January 1, 2009. The down payment assistance, however, can not be used together with the MCC. This is an either or situation.

The income and house price limitations that apply in Orange, Durham and Chatham Counties are given below.

Down Payment Assistance Income Limits

1 Man $39,950 2 Persons $45,650 3 Persons $51,350 4 Men $57,050

Down Payment Support Sales Cost Limits New House $210,000 Existing House $210,000